Students will apply the theory of debit and credit to the accounting equation, define a business transaction, and show how and why accounts are increased and decreased.

Standard 2:

Identify and describe the purpose of permanent/real accounts.

Accounting -- Changes That Affect Owner's Equity
Introduction of transactions that affect the owner's equity of a proprietorship. Introduction of revenue from sales, how sales affects owner's equity. Introduction of the different expenses for a proprietorship, how paying for expenses affects owner's equity. Introduction of the owner's drawing account for a proprietorship, why an owner might use the drawing account and how withdrawing money for personal use of the owner affects owner's equity.

Accounting-Analyzing Transactions to Debit/Credit Parts
Introduction of how transactions are analyzed in T accounts with debits and credits. How different accounts increase with a debit and decrease with a credit, as well as some decrease with a debit and increase with a credit. Analyze each of the following transactions discussed so far: receiving cash from the owner of a proprietorship as an investment, paying cash for supplies, paying cash for insurance, buying supplies on account, paying cash on an account, receiving cash from sales, paying cash for an expense, paying cash to an owner of a proprietorship for personal use.

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and see the CTE/Business and Marketing Education website. For
general questions about Utah's Core Standards contact the Director
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